Global X SuperIncome Preferred ETF

SPFF

Market cap $135M

The Global X SuperIncome™ Preferred ETF is a diversified ETF focused on preferred stocks and bonds, with 74% exposure to the financial sector and a variety of instrument types. Returns are stable but modest, with 5-year and 10-year total returns of 2.69% and 2.26%, and limited upside potential due to the fund's structure. SPFF offers steady income and lower interest rate risk, but investors should not expect significant capital appreciation or high returns.

SPFF aims to mirror the performance of the Global X U.S. High-Yield Preferred Index, investing primarily in high-yielding U.S. preferred stocks. The fund's portfolio includes bonds (13%), preferred stocks (83%), with a focus on high yields. SPFF's expected yield is around 6%, but investors face interest rate risk. We prefer CEF preferred stocks for better risk-reward balance.

GlobalX SuperIncome Preferred ETF (SPFF) invests in some of the highest-yielding preferred stocks listed in the U.S. SPFF has lost about 60% in inflation-adjusted value and distribution since its inception. Moreover, it has underperformed a junk bond benchmark and shows higher risk metrics.

The best preferred stock ETFs allow you to reduce your risk by investing in baskets of preferred stocks.

Preferred stocks offer a hybrid of stock and bond characteristics, providing a fixed and higher dividend than common stocks. Global X SuperIncome™ Preferred ETF invests in 50 high-yielding preferreds in the US, with a focus on financials. The SPFF ETF has outperformed the SPDR ICE Preferred Securities ETF and offers potential for high-yield and preferential tax treatment, but carries concentration risk in financials.

We take a look at the action in preferreds and baby bonds through the second week of April and highlight some of the key themes we are watching.

We take a look at the action in preferreds and baby bonds through the fourth week of March and highlight some of the key themes we are watching. Preferreds had a good week as Treasury yields fell on the back of the Fed's more dovish than expected stance. We take a look at how stocks with different spreads over SOFR could react to Fed's cuts.

We take a look at the action in preferreds and baby bonds through the third week of March and highlight some of the key themes we are watching. Preferreds were down for the week due to rising Treasury yields, but most preferred CEF sectors remain positive for the month. Albemarle issued a new preferred stock with a mandatory convertible feature, offering upside participation with less downside than the common and a higher coupon.

We take a look at the action in preferreds and baby bonds through the fourth week of February and highlight some of the key themes we are watching. Preferreds had a strong week with a 1%+ return, driven by a drop in Treasury yields and compression in credit spreads. Different preferreds sectors have different drawdown profiles, offering investors an opportunity to tilt to more resilient securities in anticipation of the next drawdown.

The Global X SuperIncome Preferred ETF is a fixed income ETF focused on financials preferred shares. SPFF is heavily concentrated in financials, with over 82% of holdings in the sector, and runs significant credit risk through its large BB bucket. With a 30-day SEC yield of only 5.8% now and high volatility, there are better options for yield and stability in the current market.